REPORT TO THE CITY COUNCIL
September 22, 2016
FROM: JEFF CARDELL, Director
Personnel Services Department
BY: KEN PHILLIPS, Labor Relations Manager
Personnel Services Department
SUBJECT
Title
Actions pertaining to a Memorandum of Understanding (MOU) for City employees in Unit 3, Non-Supervisory White Collar employees, represented by FCEA
1. ***Adopt a Memorandum of Understanding between the City of Fresno and the Fresno City Employees Association (FCEA) for Unit 3 - Non-Supervisory White Collar
2. ***RESOLUTION - 7th amendment to FY 2017 Salary Resolution No. 2016-120, amending salaries in Exhibit 3, Unit 3 - Non-Supervisory White Collar, as required by adoption of the Memorandum of Understanding between the City of Fresno and the Fresno City Employees Association (FCEA)
Body
RECOMMENDATION
It is recommended Council: (1) approve the attached Memorandum of Understanding (MOU) to implement wages, hours and other terms and conditions of employment for City employees in Unit 3, Non-Supervisory White Collar employees, represented by FCEA; and, (2) adopt the Seventh Amendment to Salary Resolution No. 2016-120 to amend salaries in Exhibit 3 for FCEA.
EXECUTIVE SUMMARY
The City and FCEA reached tentative agreement on a successor MOU to replace the MOU which expired on August 4, 2014. The MOU provides for an agreement through June 30, 2017, wage increases, payments to the pension plan by employees and other changes to terms and conditions of employment. Council is also asked to approve the Seventh Amendment to FY 2017 Salary Resolution No. 2016-120, amending Exhibit 3 to implement salaries stated in the MOU.
BACKGROUND
The City and FCEA started meeting in April 2014 to work towards reaching agreement on a successor MOU. The parties reached a tentative agreement in August 2016. Members of the Unit ratified the tentative agreement in a vote on August 30, 2016.
Major points of the attached MOU are summarized below.
• Term: October 3, 2016 through June 30, 2017
• Wages:
o $100 increase to base wages effective October 3, 2016
o 2.5% wage increase effective October 3, 2016
o Drop Step A for Community Revitalization Specialists to make five steps
o 2% wage increase effective January 1, 2017
o 2% wage increase effective June 30, 2017
• Pension: Employees hired on or after October 3, 2016 will pay 1.5% of the City’s pension costs
• Health and Welfare: Employees to pay 25% of FY 15 health and welfare premium plus 50% of FY 16 premium increase, plus 50% of future premium increases, up to a maximum of 30% for employees, matching agreements with other units
• Holidays:
o Eliminate one personal holiday, matches other non-safety units
o Holiday accruals as of October 3, 2016 will be placed in a special bank which can be used or cashed out each fiscal year with a limit of 20% of the balance or 48 hours whichever is greater
o Future holiday accruals will be limited to 40 hours, with holiday time paid in cash after 40 hours
o Emergency Services Dispatchers may accumulate 96 hours of holiday time
• Sick Leave: Update language to incorporate changes engendered by AB 1522, the Healthy Family, Healthy Workplace Act of 2014, and SB 579 amending Family Sick Leave
• Supplemental Sick: Accrual capped at 80 hours, employees who currently have more than 80 hours will maintain those hours but will not accrue additional hours
• Workers’ Compensation: Limit wage replacement to 66.67% to match state mandate
• Crime Scene Technicians: Remove length of service requirement for Latent Print Certification, add premium pay for Crime Scene and Forensic Photography certifications, certifications not stackable
• State Disability Insurance (SDI): Update language to make intent that employees are to use at least 13 hours a week in order to qualify for integration and accumulation of benefits
• Probation: All classes have a 12 month probation with the exception of alternately staffed classes
• Part Time Employees: Remove reference to Permanent Intermittent Employees, update language to match changes for full time employees
• Layoff: Agree to a reopener on potential changes to layoff procedures
• The City will conduct a classification and compensation study in FY 17.
The City Attorney’s Office has approved the new MOU and the Salary Resolution Amendment as to form.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act Guidelines Section 15378 this item does not qualify as a “project” and is therefore exempt from the California Environmental Quality Act requirements.
LOCAL PREFERENCE
Local preference is not implicated because this item does not involve public contracting or bidding with the City of Fresno.
FISCAL IMPACT
Approval of the MOU and Salary Resolution Amendment will result in an additional salary and benefit expenses of approximately $1,517,323 to all funds including an approximate $799,020 cost to the General Fund in Fiscal Year 2017. The cost to all funds in Fiscal Year 2018 is approximately $3,513,988 which includes approximately $1,854,064 to the General Fund.
Attachments:
City of Fresno - FCEA MOU - Redline
City of Fresno - FCEA MOU - Final
MOU Costing
Seventh Amendment to FY 2017 Salary Resolution No. 2016-120